Financial and
Project Plan Types: Explained

Financial plan types contain default setup
information and planning
options that you use for creating different types of budgets
or forecasts. Similarly, project plan types contain default information
used for creating a project plan and capturing progress.

When creating budget or forecast versions for a project,
you must select an appropriate financial plan type. Versions inherit
planning options from the financial plan type. Depending on access
levels, you can change some settings.

You associate one project plan type to a project template
and override planning options if required. Projects created using
the template inherit the updated planning options. You can revise
these options at the project level, or even replace the project plan
type.

Financial and Project Plan Setup Options

The following is a description of the basic budget,
forecast, or project plan setup options that determine how a plan
type is used in the context of a project. Except for third-party scheduling,
these options are not editable at the project level.

Option

Location

Description

Planning amounts

Financial plan type

Indicates that the financial plan type supports the
creation of versions with the following amounts:

Cost amounts

Revenue amounts

Both cost and revenue amounts

Either cost or revenue amounts

Approved budget or primary forecast

Financial plan type

Determines whether a financial plan type is used for
creating approved
budget versions or primary forecast versions that
are used for plan comparison or project performance reporting.

Default financial plan type

Financial plan type

Determines whether the financial plan type is the default
selection when you create budget or forecast versions.

Workflows

Financial plan type

Enables the use of a workflow for managing budget or
forecast status changes.

Third-party scheduling software

Project plan type

Indicates whether project planning is performed in
Microsoft Project.

If third-party scheduling is disabled in the project
plan type, you can use the associated project or project template
to create a project in Microsoft Project. However, you cannot export
the new project or link it to one created in Oracle Fusion Projects.

Enables entry of plan amounts in currencies other than
the project currency.

Planning Amounts in Financial Plan Versions:
Critical Choices

For each financial plan type, you select the
planning amounts included in the financial plan versions created using
the plan type.

Options include the following:

Cost amounts only

Revenue amounts only

Both cost and revenue amounts

Either cost or revenue amounts

Restriction

You can plan for revenue only if you are licensed to
use Oracle Fusion Project Billing.

Planning for Cost Only or Revenue Only

If you select to plan only for cost or revenue,
then all budget or forecast versions created for the financial plan
type contain only those amounts.

When you review versions created for cost-only financial
plan types, margin values and other comparisons dependent on revenue
amounts are not available. Similarly, cost amounts are unavailable
during review of versions of revenue-only financial plan types.

Planning for Both Cost and Revenue

You can select to plan for cost and revenue
together. In such a case, each budget or forecast version created
for the financial plan type contains both cost and revenue amounts.

Planning for either Cost or Revenue

If you select to plan for cost and revenue separately,
then each budget or forecast version created for the financial plan
type can contain either cost or revenue amounts. When you review cost
versions, select any revenue version created for the same financial
plan type as the source for revenue amount for use in plan comparison.

Summarized
Financial Plan Types: Explained

Summarized financial plan types are financial plan types whose previous and current approved versions (for forecasts) or
original and current baseline versions (for budgets) are used in summarization
of project performance data.

Particular financial plan types are included in summarization
by default, while you must manually select others.

Default Financial Plan Types

Approved forecast and baseline budget versions of
the following financial plan types are automatically included in summarization
of project performance data:

Approved Revenue Budget

Approved Cost Budget

Primary Revenue Forecast

Primary Cost Forecast

Important

A budget or forecast financial plan type may support
both cost and revenue in one version.

User-Selected Financial Plan Types

Apart from the default financial plan types, you can
include up to four others in summarization of project performance
data.

Tip

You can include a financial plan type before it is
used on a project for creating a version.

You can replace a user-selected financial plan type
until project performance data is summarized for reporting. After
that, you can only disable the financial plan type to exclude it from
further summarization.

Manage Financial and Project Plan Types: Set General
Planning Options

Associating Sets with Financial Plan Types: Example

You associate sets with financial or project plan types so that project
managers can use them to create financial plans (budget or forecast
versions) or project plans for projects or project templates. Financial
or project plan types are available for selection only when projects
or project templates are created for project units linked to selected
sets.

The following example illustrates the relationship
between financial plan types, sets, and project units. Project plan
types share an identical relationship with sets and project units.

Scenario

An organization has two designated project units for
project creation: Project Unit 1 and Project Unit 2. Project Unit
1 is associated with Set 1 and Project Unit 2 is associated with Set
2.

During implementation, two financial plan types were
created: Financial Plan Type A and Financial Plan Type B. Financial
Plan Type A is associated with Set 1. However, Financial Plan Type
B is associated with both Set 1 and Set 2.

In such a case, project managers working on projects
for Project Unit 1 can use only Financial Plan Type A to create financial
plan versions. Project managers working on projects for Project Unit
2 can use both Financial Plan Type A and Financial Plan Type B.

The following diagram further illustrates the relationship
between financial plan types, sets, and projects. Project plan types
share the same relationship with sets.

When specifying rate settings for financial
or project plan types, you select to use either actual or planning
rates for calculating cost or revenue for planning resources. Actual
rates are those that are used for calculating actual amounts for expenditure
items. If you use planning rates, then you can select rate schedules
created specifically for planning purposes.

Some of the reasons for using planning rates are as
follows:

Project planning extends into the future,
beyond dates for which actual rates are available. Using planning
rates enables you to plan for future periods by making assumptions
about potential rate increases or decreases.

Planning is at a more summary level
than when using actual rates. For example, use job-based rate schedules
to plan, but actually track labor costs using cost rates defined at
the employee level.

The following is a description of the points to consider
when selecting actual or planning rate schedules for calculating raw
costs, burdened costs, and revenue.

Selecting Rate Schedules when Using Actual Rates

When using actual rates for project plan types
and financial plan types that support cost amounts, you select cost
rate schedules at the resource class level. Similarly, for financial
plan types that support revenue amounts, you select bill rate schedules
at the resource class level. If the application is unable to determine
cost or bill rates for a planning resource, then it uses the resource
class rates schedules you specify here.

Selecting Rate Schedules when Using Planning Rates

When using planning rates, you select rate
schedules at the resource, job, and resource class levels. The following
table summarizes the precedence order for determining cost or bill
rates for a planning resource when deriving raw costs or revenue for rate-based
planning resources.

Rate Source

Precedence

Description

Override rate

1

Rate manually entered by users in the budget, forecast,
or project plan

Labor or nonlabor rate schedules

2

Rate schedules selected for labor or nonlabor resources

Job rate schedules

3

Applicable only for labor resources

Resource class rate schedules

4

Used when rates are not available at the resource level.
Specifying a resource class rate schedule is optional.

Specifying a Burden Schedule when Using Planning
Rates

Optionally specify a burden schedule when specifying
planning rate schedules. Oracle Fusion Projects uses this burden schedule
to calculate the burdened cost for all planning resources (including
those that are not rate-based).

If an expenditure type is not associated with the planning
resource, then Oracle Fusion Projects uses the expenditure type defined
for the associated resource class to determine the burden multiplier,
and ultimately, the burdened cost.

Manage Financial Plan Types: Set Forecasting Options

Forecast Approval
Options: Critical Choices

Forecast approval options determine the approval
process for forecast versions created for a particular financial plan
type. Approval options determine whether you can do the following:

Using Workflow for Status Changes

Select this option if you want to use Business Process
Execution Language (BPEL) workflows and notifications for forecast
approvals. Workflows enable you to define a chain of approvers for
moving forecasts from the working to the approved status.

Automatically Approving Forecasts

If you do not use workflow for forecast approvals,
you can select to approve forecast versions directly (without first
submitting them to an approver). The automatically approve forecasts
option applies even if you are not entitled to approve forecasts.
So, use it to enable automatic approval for certain financial plan
types primary forecast while controlling the forecast approval entitlement
for others.

For example, disable this option for primary forecast financial plan
types to ensure that only entitled users approve corresponding versions.
On the other hand, enable this option for other financial plan types
that do not require explicit approval, for example, those whose versions
are used for what-if analysis.

Important

The automatic approval option applies only when manually
approving forecasts. To approve forecasts versions that are generated
automatically when publishing progress, you must be entitled to approve
forecasts.

Automatically Submitting Forecast for Approval

Automatic submission for approval applies only to primary
forecasts. If you select this option, the current working primary
forecast version is submitted for approval when you create a baseline
for an approved budget version for a project.

Important

If you select to automatically approve forecasts, the
newly created working version of the primary forecast is directly
approved.

The option to automatically submit forecasts for approval
does not apply when manually creating forecasts.

Manage Project Plan Types: Set Project Plan Options

Task and Assignment
Date Settings: How They Work Together

Task and task assignment date options are selected
when specifying project planning options. Task and assignment date
settings interact to determine how planned and transaction dates are
set for tasks and how dates are set for task assignments.

Rolling Up Planned Dates for Tasks

You can select to roll planned dates for lowest-level
subtasks up the task hierarchy. In this case, planned dates for summary
tasks, top tasks, and the project are not editable. Edit planned dates
for lowest-level tasks as required. Updated dates roll up the hierarchy
to ensure that planned dates at the summary and project level are
equal to the earliest start date and the latest end date of lower-level
tasks.

Conversely, if you select not to roll up planned dates,
lowest-level subtask dates are editable but must be within the planned
date range for summary tasks and the project. You can also edit project
or summary task dates as required.

Synchronizing Task Transaction Dates with Planned
Dates

If you select to synchronize transaction dates with
planned dates, then task transaction dates are not editable. Transaction
dates always match task planned dates, plus or minus the number of
days specified as a date adjustment buffer.

Tip

Specify a positive buffer value to indicate the number
of days before the planned start date and the number of days after
the planned finish date that a transaction can be charged to a task.
Conversely, specify a negative buffer value to indicate the number
of days after the planned start date and the number of days before
the planned finish date that a transaction can be charged to a task.
In other words, when specifying a negative buffer, transaction dates
are within the range of the planned dates.

If you select not to synchronize transaction dates
with planned dates, then transaction dates are blank by default and
can be edited as required. Transaction dates entered at the summary-task
level are used as the default transaction dates for tasks at lower
levels. Transaction dates specified for subtasks must be within the
transaction dates for the summary task. If none of the summary tasks
in the hierarchy have transaction dates, then the new transaction
date must be within the project date range.

You can modify the date synchronization option until
you charge transactions to a task. Implications of changing between
options are as follows:

Deselected to selected: Existing transaction
dates are replaced with dates calculated based on task planned dates
plus or minus the date adjustment buffer.

Selected to deselected: Existing transaction
dates can be edited. New tasks have blank transaction dates that are
editable. Existing transaction dates outside the project dates are
cleared.

Project Date Cascade Options: Explained

Do not cascade date changes: Both start
and finish dates are editable. However, you must ensure the following:

The project start date is not later
than the earliest task date.

The project finish date is not earlier
than the latest task date.

Cascade change to the start date: You
can edit only the project start date.

Cascade change to the finish date:
You can edit only the project finish date.

Restriction

If you have selected to roll up planned dates for tasks
or are using an external application for scheduling, then you cannot
modify the project start or finish dates.

Cascading Changes to Transaction Dates

If you have selected to synchronize transaction dates
with planned dates, then transaction dates are updated automatically
when date changes cascade to tasks.

Note

If transactions are already charged to a task, then
you must ensure that your new summary dates are before or after the
transaction date (depending on whether you are cascading start or
finish dates.)

Cascading Changes to Assignment Dates

If you have selected to synchronize task assignment
dates with task dates, then your changes to project dates will cascade
to assignments automatically. Otherwise, you must ensure that all
task assignment dates are within the range of the new task dates.

FAQs for Manage Financial and Project Plan Types

What happens if I edit a financial or project plan type after using
it on a project?

Once you associate a project plan type with
a project or project template, or create budget or forecast versions
using a financial plan type, you cannot edit certain financial or
project plan setup options. These options include the primary forecast
and approved budget designations, use of workflow, and the use of
multiple transaction currencies.

Also, changes made to a financial plan type apply only
to new financial plan versions. Similarly, there is no impact on existing
project associations when you modify a project plan type.

Why can't I select some financial plan types when generating a budget version while setting a baseline for the project plan?

For generating a budget when setting a baseline project
plan, you can select any active budget financial plan type
otherwise available for budget creation. However, some financial plan
types (including the default financial plan type selected in the budget
generation options of the project plan type) are unavailable for selection
in the following circumstances:

If your project plan contains costs
in multiple planning currencies, then only financial plan types that
support planning in multiple transaction currencies are available.

If you have already selected an approved
cost or revenue budget financial plan type for creating a budget version,
then no other approved budget financial plan types are available.

Can I select a financial plan type for summarization before creating a version of it on a project?

Yes.

FAQs for Manage Financial Plan Types: Set Financial
Plan Options

What's an approved
budget?

Budget financial plan types can be designated
as approved cost budgets, approved revenue budgets, or both. Versions
of such financial plan types are used for plan comparison when you
review budgets or forecasts. Approved budget versions are also used
by default when reporting on project performance.

For each project, you can use only one financial plan
type that is designated as an approved cost budget or an approved
revenue budget. Either select separate financial plan types (one approved
cost budget and one approved revenue budget) or a single financial
plan type with both designations.

What's a primary
forecast?

Forecast financial plan types can be designated
as primary cost forecasts, primary revenue forecasts, or both. Versions
of such financial plan types are used for plan comparison when you
review budgets or forecasts. Primary forecast versions are also used
by default when reporting on project performance.

For each project, you can use only one financial plan
type that is designated as a primary cost forecast or a primary revenue
forecast. Either select separate financial plan types (one primary
cost forecast and one primary revenue forecast) or a single financial
plan type with both designations.

FAQs for Manage Project Plan Types: Set Project
Plan Options

What happens if I use Microsoft Project
as a third-party scheduling application?

Using Microsoft Project for scheduling limits
your ability to modify project and task dates in Oracle Fusion Projects.
Start and finish dates for the project and existing tasks cannot be
modified. You can enter start and finish dates for new tasks. However,
these dates must be within the planned dates for the summary task.
You can modify transaction dates. However, these must be within both
the task planned dates and transaction dates for the summary task
or project.

What's a baseline
project plan?

Key planned information for tasks and task
assignments, including dates, costs, quantity, effort, and rates,
that you can save from current project plan values. Setting a baseline
for a project plan does not create a new plan version. Rather, current
plan information is saved in baseline columns of the current project
plan.

You must set a baseline for your project plan before
capturing progress. Baseline amounts determine earned value for lowest-level
tasks, which in turn is used to roll up physical percent complete
to summary tasks.

Baseline data cannot be deleted, and does not change
until it is overwritten when you next set a baseline for the project
plan.

Tip

By generating a budget version when you set a baseline
for your project plan, you can maintain an historical record of past
baseline data.